GBP/USD: Time to Go Long… Again?

Trade Idea: 2012-6-28 00:28

GBP/USD 4-Hour Chart

I looked at Cable’s 4-hour chart and the broken resistance has held as support for the second time. Since testing support at 1.5550, the pair has been slowly climbing. With the Stochastic crossing over, it seems that Cable could be move higher, possibly towards former highs at 1.5770.

I don’t want to get left behind in the event of a strong rally so I chose to buy at market with a relatively tight 70-pip stop. I’m ultimately aiming for new highs, but as I said, 1.5770 is already a reasonable target. In any case, I have split my position into two to make it easier for me to manage my position.

I’ll be honest and admit that the pound doesn’t look “A-okay!” on the fundamental side of things. For one, yesterday’s roster of economic data from the U.K. came in mixed as reported by Pip Diddy. On top of that, there also seems to be widespread pessimism over the EU Summit which is also weighing down on higher-yielding currencies.

But as we all know, anything can happen especially in the forex market. Who knows, perhaps the pound will rally with the release of U.K.’s current account and final GDP report, or maybe positive developments in the EU Summit would spark risk appetite. For my account’s sake, I sure do hope I’m right!

To recap, here’s my plan:

Bought at market (1.5590), PT1 at 1.5770, PT2 yet to be determined, SL at 1.5520. Risk disclosure.

XOXO,

Huck

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11 comments

  1. Camelman

    I think the resistance will be at 1.5670 based on hitting the uptrend line from june 1st. What you think?

    Reply
    • snpfx

      i think resistance zone is bet. 1.56 and 1.5650 and the uptrend line is broken on the 4HR chart. but like huck says in forex anything can happen. i’m selling at 1.56, good luck to everyone

      Reply
  2. woris

    Hello Huck, as I’ve posted here already once, if you would have applied your Trendcatcher system you would rather have entered a short than a long trade. Why don’t you following your proven system?
     

    Reply
  3. Joven

    Stop fooling your self. Some ppl are not cut out to be real traders. A lot of ppl try and most fail. Stop wasting your time. 

    Reply
  4. alwjmonster

    Huck, Wow I’m surprised that you made the move so quickly.. but this is more to a gambling attempt to me, while you already stated lately UK reports mixed and people were pessimism about the EU summit outlooks, and you entered the trade just hoping the upcoming UK reports would support your trade. No good.

    Reply

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